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PowerOne Inc. (PWER) filed Quarterly Report for the period ended 2011-10-02.
Powerone Inc. has a market cap of $552.1 million; its shares were traded at around $5.32 with a P/E ratio of 5.1 and P/S ratio of 0.5.
This is the annual revenues and earnings per share of PWER over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of PWER.
Highlight of Business Operations:
Gross profit for the first nine months of fiscal 2011 decreased by $13.8 million to $240.4 million from a gross profit of $254.2 million in the comparable period in 2010. As a percentage of net sales, gross margin decreased to 32.1% for the first nine months of fiscal 2011 from a gross margin of 37.3% for the same period in 2010. Gross margin for the nine months ended October 2, 2011 was negatively impacted by macro-economic and industry specific pressures in the European market including an aggressive pricing environment negatively impacted gross margin as changes in customer demand resulted in price declines and shifts in product mix within the Renewable Energy SBU, increased factory overhead including start-up costs associated with our new Renewable Energy factories in North America and China, offset partially by reductions in material costs.Selling, General and Administrative Expense. Selling, general and administrative expense increased $12.1 million, or 23%, to $64.6 million for the first nine months of fiscal 2011 from $52.5 million for the same period in 2010. As a percentage of net sales, selling, general and administrative expense increased to 9% for the first nine months of fiscal 2011 from 8% for the same period in fiscal 2010. Selling, general and administrative expense increased $3.3 million, or 17%, to $22.6 million for the third quarter of fiscal 2011 from $19.3 million for the same period in 2010. As a percentage of net sales, selling, general and administrative expense increased to 9% for the third quarter of fiscal 2011 from 6% for the third quarter of fiscal 2010.
Research and Development. Research and development expense increased by $9.1 million, or 35%, to $35.0 million for the first nine months of fiscal 2011 from $25.9 million in the first nine months of fiscal 2010. As a percentage of net sales, research and development increased to 5% during the first nine months of 2011 from 4% during the same period of 2010. Research and development increased by $2.6 million, or 29%, to $11.6 million for the third quarter of fiscal 2011 from $9.0 million in the third quarter of fiscal 2010. As a percentage of net sales, research and development increased to 5% during the third quarter of 2011 from 3% during the same period of 2010. The increase in research and development was primarily due to our continued investment in new product introductions and expansion of research and development efforts during 2011.
Provision for Income Taxes. The provision for income taxes was $50.8 million for the first nine months of fiscal 2011 as compared to $66.0 million recorded during the first nine months of fiscal 2010. The provision for income taxes was $16.8 million for the third quarter of fiscal 2011 as compared to $33.1 million recorded during the third quarter of fiscal 2010. The provision for income taxes recorded during 2011 and 2010 are primarily related to taxes recorded at certain of our profitable European locations. The effective tax rate decreased to 33.0% for the first nine months of 2011 from 41.6% in the comparable period of 2010 and decreased to 28.8% for the third quarter of 2011 from 34.3% in the comparable period in 2010 as a result of the change in geographical mix of pre-tax income at our foreign locations. The effective tax rate in the third quarter 2011 was lower as no tax expense was recorded on the gain from liquidation of foreign subsidiary.
During the nine months ended October 2, 2011, revenue increased $53.3 million, or 12%, to $506.0 million from $452.7 million during the same period of fiscal 2010. While global macroeconomic uncertainty and an aggressive pricing environment negatively impacted revenue during 2011, sales volumes increased in 2011 from levels during 2010. The revenue growth in the renewable energy market was driven by gains in markets share, including our expansion further into Asia Pacific and North America. Operating margins decreased to 28% during the first nine months of 2011 from 43% for the comparable period of 2010 as a result of declines in sales prices, higher factory overhead and start-up costs associated with the new facilities established in North America and China, as well as increased investment in sales and marketing, service teams, and research and development.
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